Post by mikes1531 on Jul 20, 2015 20:33:37 GMT
Secured against a Property in Newark
£75,000
12% pa
LTV 60.0%
- The valuer assumed that the tenancies that are currently in place are assured shorthold. Can you please confirm that this indeed is the case? If not, then the valuation could be significantly overstated.
- The valuer gave a valuation of the property "...as it stands at present, before renovations are complete...". Is the borrower intending to use the loan to renovate the property? If so, how much work is planned, and how long is that expected to take? Also, what will be the impact on the current tenants? If the borrower needs vacant possession in order to do the renovations, how long will it take to achieve that?
- What is the borrower's exit strategy? If it is 'renovate and sell', is six months sufficient to achieve that? Or is a loan extension/renewal likely to be required?
